ABG Shipyard founder bank fraud case: The Central Bureau of Investigation (CBI) on Wednesday arrested Rishi Kamlesh Agrawal, Chairman and Managing Director of Surat-based ABG Shipyard in over Rs 22,000 crore bank fraud case, PTI quoted officials as saying.
Rishi Kamlesh Agrawal has been arrested on charges of duping a consortium of 28 banks of Rs 22,842 crores of bank fraud, CBI sources said.
CBI booked Agrawal, a former chairman of the company, and others for the alleged offences of criminal conspiracy, cheating, criminal breach of trust and abuse of official position under the Indian Penal Code (IPC) and the Prevention of Corruption Act, they said.
The company was sanctioned credit facilities from 28 banks and financial institutions led by the ICICI Bank, with the State Bank of India (SBI) having an exposure of Rs 2,468.51 crore, the officials said.
A forensic audit by Ernst and Young has shown that between 2012 and 2017, the accused colluded with each other and committed illegal activities, including diversion and misappropriation of funds and criminal breach of trust.
The funds were used for purposes other than for which they were released by the banks, the officials said.
The loan account was declared a non-performing asset (NPA) in July 2016 and a fraud in 2019.